Apple Spends Significantly Less on AI Infrastructure Compared to Rivals
In a race for artificial intelligence (AI) dominance among major tech firms, Apple is spending far less than its competitors. Alphabet plans $205 billion in capital expenditures this year, Amazon expects around $200 billion, Microsoft has allocated roughly $190 billion, and Meta Platforms up to $145 billion — totaling over $700 billion aimed largely at AI infrastructure. In contrast, Apple spent just $12.7 billion on capital expenditures in fiscal 2025. Apple's CFO explained that the company uses a hybrid model where it rents computing power from cloud providers rather than building its own data centers for most of its needs. This strategy allows Apple to maintain high free cash flow, with over $28 billion generated in operating cash flow during one quarter alone — significantly higher than rivals like Alphabet and Amazon. Despite the low spending approach, Apple's business is growing rapidly: revenue rose 17% year-over-year in Q2 fiscal 2026 to $111.2 billion with iPhone sales hitting a record high of $57 billion. However, concerns remain about whether this strategy will hold as AI becomes more central to consumer technology and computing demand continues outpacing supply.
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